5 Ways to Save a Ton of Money When You Buy Your Next Vehicle
Regardless of your skill level when it comes to negotiating, getting the best possible deal on a new or pre-owned car is though. Despite the amount of information available to customers on the web, the dealership has a ton of tricks to get their profit back. Here are five tips to put you in the know when you work out your next deal.
The greatest power that a dealer has over you is emotion. Once you’ve seen, touched, smelled, felt, and driven that car you’re far more likely to pay more than you should; or worse than you can afford. The beauty of the internet as it relates to car sales is that virtually everything can be done online or by phone. The more you remove yourself from the dealer’s influence, the better the deal. Send an email through their website, leave out your phone number, and use the timing of your response to get your way. You’ll find that emails start coming in offering things you didn’t even ask for.
Know Your Rebates
Most new car dealers show the price with all possible rebates included, whether they want to or not. It started with one or two dealerships who included things like Military Rebates in the price and trickled down from there. Unfortunately, the dealers who didn’t like this practice had no choice but to do it anyway because the less honest guys were showing cars for thousands of dollars less than they were. Take a look at the fine print of the car you’re shopping and see what rebates are being used. See what you qualify for and take advantage of manufacturer programs.
Negotiate the Financing
Did you know that the dealer can mark up your interest rate for profit? It’s true. You can literally pay an extra $2,000 or more for your car, in interest, than necessary. Know your credit score and research current interest rates for your tier. If the rate you’re getting in the finance office doesn’t seem right, walk away. One of two things will occur. You’ll get stopped and offered a lower rate on the way out, or you’ll get a call in a day or two asking what it’s going to take.
Shop Multiple Dealers
Don’t make the mistake of going to one dealer and letting them tell you you’re getting a great deal. In ten years of working in dealerships, I can’t recall one time a salesperson, sales manager, or finance manager, told a customer the deal they got sucked. The best way to keep them honest is to look at similar vehicles at other dealers and pit them against each other. The car business is cut-throat and competitive. They’ll drop the price to beat the guy down the street.
Research Products in Advance
If you’ve ever bought a car at a dealership, you’ve experienced the finance office. They place the “menu” in front of you showing four columns with anywhere from five to fifteen products on it and ask which one works best for you. Even though you’re thinking “None of them!”, science shows that when a customer is offered three or more options, they’ll pick one. When you don’t, you’re widdled down for an hour until you walk out with at least a service contract. Now don’t get me wrong, I’m not saying all of these products are a bad idea, but you do need to make your own judgment on what you need prior to sitting down with them. If you’re going to drive 25,000 miles a year with a 36,000-mile factory warranty; then a service contract is probably a great idea. On the other hand, if you drive 10,000 miles annually and trade every two years, you need to be prepared to say no. Like anything else in this industry, all kinds of information is available on these products online before you walk into the dealer.
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